WINNIPEG and TORONTO – Canwest Global Communications said this morning that its subsidiary, Canwest Media Inc. and its senior lenders have agreed to extend the waiver of certain borrowing conditions until May 5, 2009.
The members of an ad hoc committee of 8% noteholders, which collectively hold approximately 70% of the outstanding notes, have also agreed not to demand payment of their notes for a period ending May 5, 2009 to coincide with the expiry date of CMI’s waiver agreement with its senior lenders.
This is the latest in a series of extensions as the giant media company struggles with a negative economy and about $4 billion in debt.
During the two week period, CMI’s senior lenders have agreed to provide the company with additional access to credit. “
In an e-mail to staff this morning, CEO Leonard Asper (who will not be appearing in front of the Heritage Committee today. Instead, broadcasting head Peter Viner will lead the CWG group) reminded employees that they must “continue to exercise diligence around expense management.”
(Ed note: To that end, not a lot of Canwest folks have been seen down here in Las Vegas at the National Association of Broadcasters show. Technical chief Carol Darling and a couple of others is all who have been reported spotted here since travel budgets at the broadcaster have been clipped.)
“I know these ongoing short term extensions are difficult, particularly as we continue to face unprecedented economic challenges and regulatory roadblocks,” writes Asper.
“However, remember why we are here – we are fighting for our incredible businesses, products, and people that meet the needs of the 25 million Canadians, who, every week, read our newspapers, watch our television programming, visit our more than 80 destination web sites, and depend on us to know what’s going on in their communities.
“Our financial restructuring will take more hard work on everyone’s part, but all of this is aimed at emerging a stronger company that is best positioned to benefit from the eventual economic recovery,” he added.
– Greg O’Brien
